The infiltration of Negroes into a white section knocks hell out of values and does it quite fast. For this reason, this company does not wish to encourage, through lending, the movement of Negroes into white neighborhoods.

Our company cannot make loans in these circumstances [Negroes entering white areas]. Local correspondents would not accept such loans in the first place because of the adverse effect on public relations.

Besides, this company has policy holders in practically every section of every city in the country; if we were to finance the entry of a Negro in a new neighborhood, we would hear from the policy holders.